Posts

Image
  THE HIDDEN LEVERAGE OF HYPERSCALERS Whenever someone worries about how the hyperactive data centre investments of the AI hyperscalers are becoming increasingly financed by debt, optimists are quick to scoff. They point out that these companies still have core businesses that generate a ton of cash, relatively little debt and strong credit ratings. Even if the data centres don’t produce the expected financial returns, it’s more of an issue for equity investors than lenders. It’s a fair point. Despite the recent bond issuance splurge, hyperscalers have an average net leverage ratio of just 0.5 times, compared to 0.8 times for the technology sector as a whole, and 1.8 times for (non-financial) US companies in general, according to Morgan Stanley. Most eye-catchingly, they have more cash than debt. However . . .  You may have noticed that the hyperscalers have become increasingly inventive in how they raise the money required for a titanic series of data centres being built around t...
Post a Comment
Read more
Image
  Immigration Becomes a Global Powder Keg As the modern era of mass migration ebbs, nations should act or risk a backlash. By Listen (5 min) People protest outside the RAF Barnham site in Thetford, England, Aug. 9. Joe Giddens/PA Wire/ZUMA Press Thetford, England, population about 25,500, has been mostly quiet since King Henry VIII’s dissolution of the monasteries kneecapped the local economy in 1540. But several nights of violence last week put the Norfolk market town in the news. Crowds angry at plans to house asylum seekers at a nearby Royal Air Force site attacked buildings where migrants were believed to be sheltered. An uneasy peace returned over the weekend, but British authorities worried that the antiforeigner violence could spread. Thetford is only one place where migrants—and locals’ resistance to mass immigration—are making headlines. Images of migrants streaming across the border from Morocco into the Spanish city of Ceuta electrified viewers globally, created headac...
Post a Comment
Read more
Image
 NUKE IRAN! Trump Shifts to Economic Pressure, Again, As Iran Won’t Meet His Demands With military attacks and diplomacy not working, the Trump administration is reupping an old strategy with the hope of getting a new result By , and Listen (7 min) Trump, at least for now, is telling aides he prefers not to order more strikes. Kylie Cooper/Reuters Quick Summary Reluctant to return to all-out war, President Trump is turning back to using economic pressure against Iran. Top aides advised Trump that financial punishment at this point in the war could be more effective than military strikes, which have shown limited success. After Iran demanded that the U.S. pay war reparations, Trump countered that Iran should compensate the U.S. This summary was generated with AI and reviewed by an editor. Read more about how we use artificial intelligence in our journalism. Reluctant to return to all-out war, President Trump is turning back to using economic pressure against Iran. WASHINGTON—Presid...
Post a Comment
Read more
Image
  ONE UP ZUCKERBERG'S BUM! US court rules Meta, other tech firms must face thousands of lawsuits over social media addiction Instagram, TikTok, Snapchat, YouTube, Facebook, Twitch and Reddit applications are displayed on a mobile phone ahead of new law banning social media for users under 16 in Australia, in this... Purchase Licensing Rights , opens new tab Read more Aug 10 (Reuters) - A U.S. appeals ​court on Monday allowed thousands of lawsuits to move forward against Meta Platforms (META.O) , Alphabet's (GOOGL.O) Google, ByteDance's TikTok and Snap Inc's (SNAP.N) Snapchat over claims they ‌designed their products to be addictive to young users. The San Francisco-based 9th U.S. Circuit Court of Appeals rejected an appeal by Meta and TikTok seeking to overturn a lower court ruling requiring them to face more than 3,000 lawsuits filed in federal court, saying the companies had appealed too early. The Reuters Gulf Currents newsletter is a weekly briefing from Doha on geo...
Post a Comment
Read more

EUROPE SPACED OUT

 Germany’s economy minister has warned that rising support for the far-right Alternative for Germany could undermine the government’s efforts to woo foreign investors, as it seeks at least €3.75tn in private capital by 2040. Speaking to the FT ahead of Germany’s first investment summit in Berlin in October, Katherina Reiche warned that growing political support for the far-right AfD might “raise concerns” among potential investors. Chancellor Friedrich Merz’s coalition government is hoping to use the event to secure big commitments from international investors such as pension funds and private equity groups. It is part of Merz’s efforts to revive a stagnant economy facing structural challenges, including stiff competition from China, high energy prices and a rapidly ageing workforce. But weeks before the “Invest in Germany” conference starts on October 19, the AfD may secure historic wins in elections in two former East German states. Notably, the far-right party is within reach of...
Post a Comment
Read more

GERMANY AND THE TROUBLESOME ALTERNATIVE

Image
  Germany’s economy minister has warned that rising support for the far-right Alternative for Germany could undermine the government’s efforts to woo foreign investors, as it seeks at least €3.75tn in private capital by 2040. Speaking to the FT ahead of Germany’s first investment summit in Berlin in October, Katherina Reiche warned that growing political support for the far-right AfD might “raise concerns” among potential investors. Chancellor Friedrich Merz’s coalition government is hoping to use the event to secure big commitments from international investors such as pension funds and private equity groups. It is part of Merz’s efforts to revive a stagnant economy facing structural challenges, including stiff competition from China, high energy prices and a rapidly ageing workforce. But weeks before the “Invest in Germany” conference starts on October 19, the AfD may secure historic wins in elections in two former East German states. Notably, the far-right party is within reach o...
Post a Comment
Read more